Digital Marketing Is a Puzzle to Figure Out
Within marketing, we are left with unfinished picture in the box and how the different pieces will eventually fit together, that certainly makes marketing a lot harder than we think
In present article we are going to get that unfinished work done. We’ll walk through the proven digital marketing framework so that we can see how every marketing option available to us and fit together to create a successful marketing plan.
As we move into the framework, I’ll highlight how digital marketing actually works. If we break down all into individual pieces, then digital marketing follows a very basic formula:
(Obtained Revenue) = (Website Traffic) x (Conversion Rate) x (Customer Value)
Income/Revenue from digital marketing is directly resembles to how many people had visited web website, how many of those people convert into customers, and how much those customers are worth to web business.
There are 3 ways to increase web revenue from digital marketing:
- Increase web traffic.
- Increase web conversion rate.
- Increase web customer value.
Also, before we move on it’s important to remember that web revenue will be zero if any one of those 3 variables is zero. That’s just basic math. It doesn’t matter if we drive millions of visitors to web website if web conversion rate is zero. We’ll still end up with zero revenue!
1. Website Traffic
- The first Pillar is website traffic. Obviously, if we don’t get any traffic to web website, then we’re not going to be very successful with digital marketing. If we’re just getting started, then this is where we need to focus.
- Think of website traffic like fuel.
- We need a constant supply of “fuel” or else web marketing will come to a screeching halt.
2. Website Conversions
- As we mentioned above, all the traffic in the world does nothing for web business unless we can actually convert it into leads and sales. If there is an already established businesses that already have a steady stream of visitors, improving website conversion is likely the biggest leverage point to increase sales.
3. Customer Value
- Customer value is the main factor in digital marketing, yet many businesses ignore it. Options for increasing web customer value include raising web prices, offering recurring/monthly offerings rather than just one-time purchases, and offering additional complementary products/services after the sale (upsells and cross-sells).
- The final Pillar is tracking. Without proper tracking in place, then we’ll be flying blind with very little hope to improve the other 3 Pillars.
- Think of tracking like the dashboard of web car. Could we imagine driving if we didn’t have a speedometer or a fuel gauge? That would be pretty stressful because we wouldn’t know if we needed to slow down or speed up. Plus, we would likely run out of fuel with no warning signs. Proper tacking will guide web marketing decisions by telling us exactly where we need to focus.